Where marginal propensity to consume is denoted as MPC,consider the following:

a.Assuming no crowding-out and MPC = 0.75,calculate the amount of government spending needed to bring this economy back to full-employment output.
b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full-employment output,calculate the MPC in this economy.

Question

Where marginal propensity to consume is denoted as MPC,consider the following:
  
a.Assuming no crowding-out and MPC =  0.75,calculate the amount of government spending needed to bring this economy back to full-employment output.
b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full-employment output,calculate the MPC in this economy.

Quizplus · Accepted Answer

The Answer of Where marginal propensity to consume is denoted as MPC,consider the following:
  
a.Assuming no crowding-out and MPC =  0.75,calculate the amount of government spending needed to bring this economy back to full-employment output.
b.Assuming no crowding-out and that $10 billion would be needed to bring this economy back to full-employment output,calculate the MPC in this economy.

Where Marginal Propensity to Consume Is Denoted as MPC,consider the Following